Rugby Australia reveals $37 million deficit on 2024 operations

Rugby Australia has confirmed that it accumulated a $36.8 million debt on its operations in 2024, attributing the loss to one-off costs and investments, including the integration of Super Rugby’s NSW Waratahs, ACT Brumbies and the now-defunct Melbourne Rebels, as well as financial injections into women’s rugby.

Releasing its annual report today, Rugby Australia says it has “changed the trajectory” of the sport and is looking forward to the commercial windfall of the upcoming 2025 British and Irish Lions tour and the men’s 2027 and women’s 2029 World Cups.

The governing body also took the opportunity at its results announcement to criticise efforts to poach Australia’s best young talent, after the pursuit this year of multiple junior Wallabies by French recruiters.

The annual report showed that operating expenses grew $26 million to $156 million due to costs of running the Waratahs, Brumbies and Rebels, and an increase in player payments and match day costs related to hosting more international matches.

Rugby Australia oversaw six home Wallabies fixtures in 2024 compared to two in 2023, but revenue grew only $1.9 million to $126.3 million. The annual report noted the commercial program experienced a “challenging year” due to a poor performance by the Wallabies at the 2023 World Cup and uncertainty in Super Rugby Pacific.

Advising that the game was still on track to pay off a $80 million loan agreement with Pacific Equity Partners (PEP) this year, Rugby Australia Chief Executive, Phil Waugh advised “(we are) forecasting a record surplus in 2025 which should provide us the option of exiting the credit facility with PEP. “Australian rugby then enters a new, substantially upweighted five-year broadcast cycle from 2026.

“And in 2027 and 2029, Australia will welcome the world to our shores for the men’s and women’s editions of our sport’s grandest tournament, the Rugby World Cup. “

The code carried the financial burden of several challenges in 2024 that should now be in the past. These include the $10.3 million integration of the Waratahs and Brumbies, $5.1 million in outlays associated with the exit of the Rebels and almost $7 million in interest charges.

Rugby Australia argues the game is in a healthy on-field state, reporting player participation across clubs, events and schools grew almost 15% and finally returned to pre-Covid levels.

Rugby Australia Chair, Daniel Herbert said it had been a “year of transformation”, noting “the game in Australia has made significant progress over the last 12 months and, while that is no doubt pleasing, we are acutely aware that there is still plenty of work ahead of us for Australian rugby to realise its full potential.

“Reform of the magnitude Rugby Australia completed in 2024 inevitably requires one-off strategic costs and investments, which are represented in the annual report. Those outlays have changed the trajectory of Australian rugby and placed the game on a strong footing for the future, reflected in the significantly improved five-year broadcast deal with Nine announced last week.”